Wednesday, January 14, 2015

Ding Ding! All ABOOOOARD!...

...The Great Rate Compression Train!

The European Court of Justice (ECJ) on Wednesday said that the Outright Monetary Transactions (OMT) bond-buying program -- commonly seen as a predecessor to QE -- was compatible with treaty provisions and was in line with European Union law, as long as certain conditions are met.
The guidance came from Pedor Cruz Villalon, an advocate general at the court, who added that the ECB should not provide "direct" financial assistance to countries when making bond purchases, should not distort markets and would need to justify the use of such stimulus measures. It also stated that the ECB must have a "broad discretion when framing and implementing the EU's monetary policy."

No comments: